Before EU countries vote on punitive tariffs on Chinese electric cars, BMW boss Oliver Zipse called on the federal government to give a clear no. Germany’s prosperity depends on open markets and free trade. Zipse said additional tariffs would hurt German companies active globally and could “invoke a trade conflict that in the end only the losers will know.” “Therefore, the federal government must take a clear stand and vote against the introduction of additional tariffs in the EU.”
The EU Commission has investigated competition-distorting subsidies for Chinese electric cars and plans to impose punitive tariffs of up to 36 percent. The final decision now lies with the 27 member states. The Chinese government accuses the European Union of protectionism and threatens to take countermeasures.
According to industry association VDA, the German auto industry exported vehicles and parts to China for 26.3 billion euros last year. Cars and components worth 6.8 billion euros were imported from China. According to the VDA, the potential harm of punitive tariffs to the German auto industry is greater than the potential benefit.
